Project Description
DISCLAIMER: This In Brief section offers a series of business, real estate, employment, estate planning and tax bulletins prepared by the attorneys at Fauver, Large, Archbald & Spray, LLP. This is not exhaustive, nor is it legal advice. You should discuss your particular situation with us or with your own attorney. Our legal representation is only undertaken through a written engagement letter and not by the distribution or use of this information.
Q: “What is the purpose of a Private Placement Memorandum?”
This document, sometimes referred to as an offering memo, describes details related to the private offering of securities. Privately held businesses may use this to attract investors by outlining the offering terms, potential risks, and description of the company and its management, how proceeds will be used and what securities are being offered. These offerings need not be registered with the SEC or other federal agencies as they meet the requirements of a registration exemption outlined in the Securities Act of 1933.
For more information about how this type of offering works, and to understand when a business can consider a PPM, contact our Business, Corporate, and Venture attorneys.